RAYMOND LTD SHARES HIT 52-WEEK HIGH AMID REAL ESTATE BUSINESS SPLIT - DETAILS

On Friday, shares of Raymond Limited soared by more than 12%, reaching a trading price of Rs 3,299.60. The stock also hit a 52-week high during the day. The 52-week high and low for Raymond shares stand at Rs 3,484 and Rs 3,484, respectively.

The surge came after the Raymond Limited has declared the vertical demerger of its Real Estate Business into a wholly owned subsidiary, Raymond Realty Limited (RRL). Following the demerger, both Raymond Ltd and Raymond Realty Limited will operate as separate listed entities within the Raymond Group, pending statutory approvals. Shareholders of Raymond Ltd will receive one share of RRL for each share they hold in Raymond Ltd.

This strategic move comes as Raymond's Real Estate Business has achieved significant scale, reporting revenue of INR 1,593 crore (a 43% year-on-year growth) and an EBITDA of INR 370 crore in FY24. This positions the new entity well to pursue its growth independently. Raymond Realty owns approximately 100 acres of land in Thane, with around 11.4 million square feet of RERA-approved carpet area, of which about 40 acres are currently under development. The company has five ongoing projects on this land, worth Rs 9,000 crore, and an additional potential to generate over Rs 16,000 crore, resulting in a total potential revenue of over Rs 25,000 crore from this land bank.

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Adopting an asset-light model, Raymond Realty has recently launched its first Joint Development Agreement (JDA) project in Bandra, Mumbai. Additionally, Raymond has signed three new JDAs in Mahim, Sion, and another in Bandra East, Mumbai.

These four JDA projects in the Mumbai Metropolitan Region have a combined revenue potential exceeding Rs 7,000 crore. With the Thane Land Bank developments and current JDAs, the company's potential revenue reaches Rs 32,000 crore.

Commenting on the development, Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said; "Having stated that now we have clear three vectors of growth at Raymond group i.e. Lifestyle, Real Estate and Engineering, this corporate action is in line with creating shareholder value creation. This strategy to demerge the Real Estate business into a separate company that will be listed through automatic route is another step to enhance the shareholder value. The existing shareholders of Raymond Limited will get the shares in the new listed Real Estate company in a ratio of 1:1."

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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money related decisions.)

2024-07-05T09:12:01Z dg43tfdfdgfd